MISCONCEPTIONS IN NEGOTIATING PIPELINE EASEMENTS

This has been the year of misconception about negotiating with pipeline companies. It is no secret Pennsylvania in the past few years has become a hotbed for pipeline companies.  Many Pennsylvania residents until a few years ago had never heard of the term “Eminent Domain.”  They were not aware there was a concept in the law where a private pipeline company could forcibly come onto their property with condemnation power.

THE CREATORS OF THE CONFUSION

With the growth of the Marcellus Shale play and the related pipeline companies, came Easement Agreements, Land Men and attorneys (knowledgeable and not so knowledgeable) and several wonderful nonprofit organizations.  Confused homeowners are bombarded with information from all parties, and all sides, each purporting to have experience with what a homeowner can and cannot do with regards to negotiating with these new invaders of the republic.

PROPERTY OWNERS LOST IN THE PROCESS 

From the chaos of the fighting between Right of Way Agents (called Land Men) representing the pipeline companies, the attorneys, and the nonprofits, many homeowners report feeling they have become lost.  Many feel they have been misguided and, more sadly, suffered terrible, irreparable and preventable changes to their property.  This includes the loss of sound and visual buffers, as their trees were cut down and their stone walls, lawns, gardens, and landscaping are torn apart.

WHAT WE DO

We regularly negotiate Pipeline Easement Agreements for property owners – both commercial and residential.  A key component in these negotiations has been to bypass the “whisper down the alley” approach used by many and to work directly with the decision maker as opposed to a mere outside agent.  The approach of our firm is always, “what is best for the individual homeowner”.

We sit down with each individual property owner and list their individual concerns.  We make sure our modifications to the proposed easement agreement by the pipeline company include and address each one of the homeowner’s concerns.  In addition, we address technical legal issues which are critically important, but not often considered by property owners.

We do not believe in taking financial advantage of the homeowner during this difficult and confusing time.  Our objective has always been and remains to shift the costs of the negotiation process.  That means finalizing the easement and transferring the responsibility for attorney’s fees and costs associated therewith to the party that should rightfully incur the obligation, the pipeline company.  After all, why should the property owner be penalized any further?  It is not their fault that the pipeline chose their property for their pipeline?

THE GREAT MISCONCEPTIONS

That being said, let’s clarify something:  THE EASEMENT AGREEMENTS OF THE PIPELINE COMPANIES ABSOLUTELY CAN BE MODIFIED and THE AMOUNT PROPOSED BY THE PIPELINE COMPANY ABSOLUTELY CAN BE NEGOTIATED.  Remember the pipeline’s first offer is never their final offer.  If you have been informed by anyone that you must accept the terms of the pipeline company as given and/or that the easement agreement cannot be negotiated, THIS IS ABSOLUTELY NOT TRUE.  If you are told you must sign in 72 hours, that is also not true.

BUT I WANT TO FIGHT

What if you want to take a position fighting the pipeline?  Should you just abandon any attempt at improving the terms of your own easement agreement?   Of course not.    Although we do not officially take either a favorable or negative stance on the construction of pipelines in Pennsylvania, we have had several clients negotiate and secure protections for their property, while continuing to take leading positions in the fight against the pipeline companies.

Pay attention to the Adelphia Gateway Pipeline.  The Land Men suggest they only want a small correction to the easement.  In truth they want the property owners to agree to a use (transportation of explosive gas) not permitted in the currently recorded easements.

Oil or Gas Pipeline -Impact the Value of Property

Will an Oil or Gas Pipeline Impact the Value of Your Property?

New Pipeline projects in PA have the potential to impact the value of your property and the  comfort of hundreds of thousands of property owners.  There are numerous pipeline projects in development and the start up phases.  It is more important than ever to know what is coming before it comes.  Here are a few tips on the topic and a list of the current major projects.  (Note:  Even minor projects can be disruptive).

TIPS

  • First of all, the time for steering a pipeline away from your property is in the very early stages.  Often the engineers are not able to understand the nature of the ground along the entire proposed line.  In one case we met with the designers and engineers before the route was finalized, because we learned the line was proposed to go through the farm of a long time client. During the meeting we walked the property and showed the pipeline reps the nature of the ground under the surface.  2 feet down was a   solid layer of quartz rock (can you spell blasting?)  We were able to steer the line 1/2 mile away from the farm.
  • The pipeline is coming.  If you think you can stop it, you are fooling yourself.  What you need to do is minimize its impact and maximize your payment.  We have found that most of the landmen (men and women) are decent reasonable people who simply want to get their job done.  If you think hiring a lawyer who yells and scream at them, and threatens court, will help you….. you have a lot to learn.  We find we get more from honey than vinegar. When negotiating does not work we have significant deep experience in court.  The fact that we are willing to go to court (and in fact  enjoy it) makes pipeline companies want to settle with us to avoid certain litigation.
  • You cannot negotiate this yourself.  Have you ever heard of brain surgery–self taught???   You need a real estate lawyer with a proven track record.
  • The sooner you see a lawyer, the better.  It is good to negotiate at the same time as neighbors, but every property is unique and ever easement is negotiated individually.  You cannot cross pollinate negotiations.  We do not discuss two  clients issues in the same phone call unless they are in different locations.
  • If the pipeline company involuntarily takes your property, under the law, they have to pay your legal and appraisal fees, but only up to $4,000.
  • In almost all cases, we negotiate for payment of our full fee from the pipeline company.

Let’s talk about the 7 major new pipelines.  We will give you a link to enable you to go right to the horse’s mouth as to each pipeline.

 

Our team at Tupitza & Associates stands ready to consult with impacted property owners.  We handle these issues across the state—- in all 67 counties.  We travel for meetings with groups of clients and also meet by phone or WebEx sessions.